Soy-Yer-Dough
DEAL
EPISODE SUMMARY
đź•“ Air Date: September 29, 2009
Asking For:
$125,000 for 25%
Investor:
Kevin O'Leary, Daymond John, Robert Herjavec (3)
Deal:
$300,000 for 51%
PRODUCT SUMMARY
Soy-Yer-Dough is a wheat-free, soy-based modeling clay designed for children with wheat allergies, offering a safe and fun alternative to traditional modeling clay.
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Background Story
Sawyer Sparks, a 22-year-old college student from Bloomfield, Indiana, embarked on a journey to address a pressing need in his community. It all started when one of his favorite professors mentioned her child’s struggle with celiac disease, an autoimmune disorder triggered by gluten consumption. The child couldn’t partake in the simple joys of playing with traditional modeling clay due to its wheat-based composition. This revelation struck a chord with Sawyer, igniting a spark of innovation.
Drawing upon his background in entrepreneurship and a passion for making a difference, Sawyer saw an opportunity to create a solution. With the support of his mom, Sue, and his girlfriend, Sammie, he set out to develop Soy-Yer-Dough, a wheat-free, soy-based alternative to modeling clay. Their humble headquarters? Sawyer’s mom’s kitchen, where they meticulously crafted each batch of Soy-Yer-Dough by hand.
Driven by a desire to not only fill a market gap but also uplift his community, Sawyer poured his energy into perfecting the product. His background in business studies coupled with his hands-on experience in manufacturing provided him with the tools needed to navigate the entrepreneurial landscape. As they toiled away in the kitchen, mixing and molding Soy-Yer-Dough, Sawyer’s vision extended beyond profit margins. He envisioned a future where Soy-Yer-Dough would not only bring joy to children with wheat allergies but also create job opportunities in his hometown of Bloomfield, Indiana.
The Product
Soy-Yer-Dough stands as a revolutionary solution in the realm of children’s sensory play. Crafted from soy and free from wheat, this innovative modeling clay provides a safe and enjoyable experience for children with wheat allergies, filling a crucial gap in the market. Its gluten-free composition ensures that children can engage in sensory play without the risk of adverse reactions, making it a welcome addition to classrooms, daycare centers, and homes.
The product boasts several features that set it apart from traditional modeling clay. Not only is Soy-Yer-Dough non-toxic and safe for children of all ages, but it also emits fun scents like cherry, adding an extra layer of sensory delight. Its pliable texture allows for easy molding and shaping, encouraging creativity and imagination in young minds.
Soy-Yer-Dough can be purchased through various channels, including online platforms and select retail stores. Customers have the option to buy individual containers or opt for bulk orders, catering to both personal and institutional needs.
Prices typically range from $5 to $10 per container, making it an affordable and accessible option for families and educators alike. With its unique formulation and commitment to quality, Soy-Yer-Dough offers a versatile and inclusive sensory play experience, enriching the lives of children while providing peace of mind to parents and caregivers.
How It Went
The company’s position before Shark Tank
Soy-Yer-Dough has exhibited a promising trajectory since its inception, with a solid foundation rooted in community support and a commitment to innovation. Operating out of Bloomfield, Indiana, the company has established itself as a frontrunner in the niche market of wheat-free modeling clay, catering to the needs of children with wheat allergies. Partnerships play a vital role in Soy-Yer-Dough’s growth strategy, with the company forging alliances with local retailers and educational institutions to expand its reach. Wholesalers who share the company’s vision of providing safe and inclusive play experiences have also been instrumental in distributing Soy-Yer-Dough to a broader audience.
The primary customer base for Soy-Yer-Dough comprises parents, educators, and caregivers seeking safe and engaging sensory play options for children with wheat allergies. Through targeted marketing efforts and word-of-mouth referrals, the company has cultivated a loyal following among health-conscious consumers and advocates for inclusive play. Funding for Soy-Yer-Dough’s operations primarily comes from internal sources, with initial capital raised through personal investments and crowdfunding campaigns. While the company has achieved profitability through steady sales growth, additional funding may be sought to support expansion initiatives, such as establishing a dedicated manufacturing facility in Bloomfield.
At present, Soy-Yer-Dough operates as a lean organization, with founder Sawyer Sparks overseeing day-to-day operations alongside his mom, Sue, and girlfriend, Sammie. The company’s streamlined structure enables agility and flexibility in responding to market demands while maintaining a focus on quality and customer satisfaction. Despite facing challenges inherent to small-scale manufacturing, such as production limitations and resource constraints, Soy-Yer-Dough remains poised for further growth and innovation. With a strong foundation, strategic partnerships, and a clear vision for the future, the company is well-positioned to continue making waves in the world of sensory play.
The Negotiations:
During the Shark Tank episode, Sawyer Sparks pitched his company, Soy-Yer-Dough, seeking a $125,000 investment in exchange for 25% equity. The Sharks were intrigued by Sawyer’s innovative, wheat-free modeling clay designed for children with celiac disease and wheat allergies. Kevin O’Leary quickly recognized the product’s licensing potential and made an initial offer of $125,000 for 51% of the patent, emphasizing his extensive experience in licensing. Sawyer hesitated, concerned about giving up majority control of his company.
Robert Herjavec then countered with a more favorable offer of $125,000 for 40% equity, which appealed to Sawyer as it allowed him to retain more control. However, Kevin O’Leary, undeterred, joined forces with Daymond John to sweeten the deal. They proposed a combined investment of $300,000 for 51% equity. This significant increase in investment demonstrated their confidence in Soy-Yer-Dough’s potential and their commitment to helping Sawyer achieve his business goals.
Faced with the compelling joint offer from O’Leary and John, Robert Herjavec joined in, making the same proposal. This unified offer from three Sharks—Kevin O’Leary, Daymond John, and Robert Herjavec—solidified the deal, providing Sawyer with a total investment of $300,000 in exchange for 51% equity in Soy-Yer-Dough. Sawyer ultimately accepted this deal, recognizing the strategic value of partnering with three experienced investors who could help scale his business and negotiate lucrative licensing deals. The final agreement marked a significant turning point for Soy-Yer-Dough, ensuring the company’s growth while aligning with Sawyer’s vision of creating jobs in his hometown, Bloomfield, Indiana.
